The comparison of a supply chain to a value ‘web’ is a topic that’s hard for us to not talk about. It is correctly said that supply chains, if built right, can span out like a (Clear) Spider’s web to connect all the suppliers and their partners in the chain. In fact, that is what they are meant to do! However, the existing supply chains flow only from the consumption of raw materials to their transformation into finished goods. Sadly, this linear model has put high pressure on Earth’s natural resources.
As a result, it’s time that industries adopt a better and more sustainable form of supply chain: Circular Supply Chain (CSC). A CSC is similar to a linear supply chain, but it keeps the resources in use beyond their service life. As a result, a good can convert or be used to convert other goods for consumption. This model will lower your costs and risks, and offer sustainability benefits to both you and the consumer.
The transition of supply chains towards a circular one will be slow, but has surely begun. This blog post will look at some ways your supply chain can become circular.
Supply Chain Digitization
In order to digitize your supply chain, you have to gather all the data that comes out of it. This will allow you to track the position of all your goods throughout the chain. Furthermore, tracking should extend to both forward and reverse loops. This means that you should know where your goods are going forward in the supply chain or backwards (if returned at any point). Make sure that this data is visible to all the appropriate parties. In addition, if you get an effective inventory management system, it will make this process much easier!
Reverse logistics is the process of reusing products and materials to capture their value or dispose properly. For a CSC, this is a very important element. You need to:
- Create proper channels for the goods to flow back in the chain
- Partner and collaborate with suppliers and third parties
Don’t let this stage scare you! Find a capable Warehousing Management and 3PL system that suits your needs and will allow you to integrate RL to your existing supply chain.
Inventory control of returns
Once the goods return to you, it is important that you control the inventory. Make sure to:
- Organize and sort the returns within the chain
- Notify all the relevant stakeholders across the board
If you take these steps, you’ll better manage your inventory and handle all the returns efficiently. Use Return Material Authorization to streamline this process.
Estimates say that a circular economy can possibly help in saving $1 Trillion in costs by 2025. Furthermore, an integral part of a Circular Economy is, you guessed it right, Circular Supply Chain. Interested in learning more? Take a look at how Clear Spider can help your supply chain transform into a Circular Supply Chain.